A New Leadership Imperative: A Social CEO

Leaders, by definition, go first. That’s why it’s so astounding that 70% of Fortune 500 CEOs still do not have a social presence. Every day, new studies arise making the case for social CEOs — and the benefits to employees, shareholders, customers and influencers. At a time when most of the planet is online, your company — and its reputation — cannot afford to be left behind.

Why Social MatterS
We’ve seen the power of social media in reaching consumers and its impact on building brands. But there is an even greater, untapped opportunity for CEOs to use it as a strategic tool for building trust & relevance, a strong corporate culture and long-term shareholder value.

94 82

of people believe social CEOs will enhance the company’s brand2

of people are more likely to trust a company with a social CEO2

81 77

of people think social CEOs are better equipped leaders2

of people are more likely to buy a product or service from a company with a social CEO2

your reputation dependS on it
Leadership and reputation go hand in hand. Leaders need to be on the front line to build trust, and social media provides the tools to do that. Employees, customers and shareholders are demanding that CEOs exhibit accountability and transparency in everything they say and do. People want the ability to hear directly from the C-suite. Social media has created an open environment where CEOs can personally demonstrate leadership, communicate their vision and provide transparency, rather than just act on behalf of their companies.

93% 63% $3.0
TriLLiOn

of people believe a social CEO improves reputation in good times and bad2 of a company’s market value is attributable to reputation3 contribution to market cap in S&P 500 companies for corporate reputation4

…And for CEOs looking to reach their key stakeholders with the right — and relevant — messages, they should look no further than social media. A real-time focus group, social media helps leaders be more “in-tuned” to the people who matter most, and make more authentic, meaningful connections.

enhancing Shareholder Value
Don’t think investors are impacted by social media? Think again. In the wake of recent corporate scandals, crises and bailouts, investors are looking for companies — and their leaders — to demonstrate a renewed commitment to transparency and public accountability. Social media offers CEOs the tools to communicate a clear strategy and story behind the numbers — one that earns them more credit on Wall Street than their non-social counterparts.
At the same time, we know that intangibles like leadership, vision and quality of management have a very tangible impact on valuation. Social media makes delivering on those intangibles clear and straightforward. It allows a company to communicate effectively, directly and obtain real time feedback.

52 80

% % %

of analysts factor an assessment of senior leadership strength into their company valuations5 of analysts give companies a premium valuation based on effective leadership teams5 valuation premium for companies with effective leadership5 More likely for analysts to discuss clear intentions of a company with a social CEO6

Building a corporate culture
Everyone wants to be part of a collaborative and transparent workplace culture that provides employees access to leadership and encourages information sharing. Social media can help create intimacy in organizations big and small, offering a virtual “open-door policy” that gives leaders an opportunity to make meaningful connections instantly.
Not only can social media create an open work environment, but it can also unlock tremendous value within and across an organization. From generating new consumer insights, streamlining communication between different parties, crowdsourcing product ideas, and increasing productivity, companies can create tangible value through social media. The most successful companies work hard to create a culture of collaboration, communication and trust — and it begins at the top. How can you expect your employees to be transparent, progressive and collaborative if you aren’t taking the same opportunities? Great leaders lead by example.

creating Brand aWareneSS
A company’s brand - built on trust and relevance - is one of its greatest assets. The role of social media in building communities of brand advocates is well documented. Adding a socially engaged CEO can add even greater opportunities for the brand. Socially active CEOs can shape the conversation, influence the influencers and convert brand loyalists into brand advocates. According to recent research6, a social CEO can help drive broader media coverage on a greater spectrum of brand-building topics, such as a company’s corporate social responsibility efforts, corporate culture, and leadership qualities beyond the standard business news.

criSiS ManageMent
In the age of social media, there is no such thing as a small issue. Almost 75% of CEOs8 are involved with crisis resolution, and social media provides a powerful tool to manage crises, understand the relevant issues and respond with clarity and effectiveness.

70% 93%

of companies report experiencing a threat to their reputation8 of employees from various companies believe having a social CEO helps during crisis management2

Leaders are expected to be informed and in charge, and at no other time is transparency at a greater premium. CEOs can use social media to keep in front of the news cycle and instantly connect with stakeholders, which can mean the difference between a positive and negative perception of the entire situation.

Social ceo rx: Where to Start
SharE COntEntS & FaCtS Social media provides an excellent opportunity for sharing information about corporate developments, in the CEOs own words and voice. But the real opportunity is sharing something beyond just corporate news. Show people more than just what is written in your company bio. Let people know what’s on your mind, and give an otherwise faceless corporation a human side to which people can relate. SharE InSIghtS Move past the “who”, “what” and “where” information and provide the “why”. Use social media to position yourself as a thought leader and a go-to-resource for employees, customers and everyone in between. Share your views on your industry and issues that matter to you. Reinforce your company’s culture, leadership qualities and core values, and become the voice of an entire industry. COnnECt & EngagE Be accessible and relevant. Begin to engage with your key stakeholders through social media and exchange ideas and conversation in real time. Through engagement you can begin to build connections with the people that matter most to your company and create strong relationships that will be invaluable as a leader.